What the lowest my credit can be to get a home loan?

The minimum credit score that you will need in order to be qualified for a home loan will depend on the type of home loan that you are applying for. When your mortgage credit report is run by a mortgage lender, you will receive three scores. One score from Equifax, TransUnion and Experian. The bank that you are working with will typically take the middle score of these three scores to determine whether you qualify for the loan you are applying for.

FHA Loan

FHA loans are primarily intended for first time home buyers and require the borrower to put down 3.5% of the purchase price of the property for single family residences and for a condo/townhome. However, for a Du-Plex or Tri-Plex, the borrower will usually have to put at least 10% on the property when using an FHA loan.
FHA down payment assistance programs are also often offered to first time home buyers. With these programs the borrower only has to put .5% down, while the remaining 3% of the down payment is placed on second loan secured by the property. The borrower will typically not make any payments on this second loan, and within three years the lien is removed from the property title. To qualify for such down payment assistance programs, the borrower must show that they make less than the FHA income limit in the county they are buying.

VA Loan

The minimum down payment requirement for a conventional on a single family residence, condo, or townhome is typically at least 3%. However, for a Du-Plex or Tri-Plex, the minimum down payment can typically range from 10 – 15% of the purchase price, depending on the bank’s guidelines.

Keep in mind that the less that you put down on the property, the higher your mortgage payment will be. This is due to the fact that your loan size will be larger than if you had made a larger down payment and you will also be paying more in mortgage insurance.

FHA Loan

FHA loans are primarily intended for first time home buyers and require the borrower to put down 3.5% of the purchase price of the property for single family residences and for a condo/townhome. However, for a Du-Plex or Tri-Plex, the borrower will usually have to put at least 10% on the property when using an FHA loan.
FHA down payment assistance programs are also often offered to first time home buyers. With these programs the borrower only has to put .5% down, while the remaining 3% of the down payment is placed on second loan secured by the property. The borrower will typically not make any payments on this second loan, and within three years the lien is removed from the property title. To qualify for such down payment assistance programs, the borrower must show that they make less than the FHA income limit in the county they are buying.